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  1. 1. HUMAN RESOURCE MANAGEMENTDefinitionHuman Resource Management (HRM) is the function within an organization that focuses onrecruitment of, management of, and providing direction for the people who work in the organization.HRM can also be performed by line managers.HRM is the organizational function that deals with issues related to people such as compensation,hiring, performance management, organization development, safety, wellness, benefits, employeemotivation, communication, administration, and training.HRM is also a strategic and comprehensive approach to managing people and the workplace cultureand environment. Effective HRM enables employees to contribute effectively and productively to theoverall company direction and the accomplishment of the organizations goals and objectives.HRM is moving away from traditional personnel, administration, and transactional roles, which areincreasingly outsourced. HRM is now expected to add value to the strategic utilization of employeesand that employee programs impact the business in measurable ways. The new role of HRM involvesstrategic direction and HRM metrics and measurements to demonstrateScopeHuman resources are undoubtedly the key resources in an organization, the easiest and the mostdifficult to manage! The objectives of the HRM span right from the manpower needs assessmentto management and retention of the same. To this effect Human resource management isresponsible for effective designing and implementation of various policies, procedures andprograms. It is all about developing and managing knowledge, skills, creativity, aptitude andtalent and using them optimally.Human Resource Management is not just limited to manage and optimally exploit humanintellect. It also focuses on managing physical and emotional capital of employees. Consideringthe intricacies involved, the scope of HRM is widening with every passing day. It covers but isnot limited to HR planning, hiring (recruitment and selection), training and development, payrollmanagement, rewards and recognitions, Industrial relations, grievance handling, legal proceduresetc. In other words, we can say that it’s about developing and managing harmoniousrelationships at workplace and striking a balance between organizational goals and individualgoals.The scope of HRM is extensive and far-reaching. Therefore, it is very difficult to define itconcisely. However, we may classify the same under following heads:  HRM in Personnel Management: This is typically direct manpower management that involves manpower planning, hiring (recruitment and selection), training and development, induction and orientation, transfer, promotion, compensation, layoff and retrenchment, employee productivity. The overall objective here is to ascertain individual growth, development and effectiveness which indirectly contribute to organizational development.
  2. 2. It also includes performance appraisal, developing new skills, disbursement of wages, incentives, allowances, traveling policies and procedures and other related courses of actions.  HRM in Employee Welfare: This particular aspect of HRM deals with working conditions and amenities at workplace. This includes a wide array of responsibilities and services such as safety services, health services, welfare funds, social security and medical services. It also covers appointment of safety officers, making the environment worth working, eliminating workplace hazards, support by top management, job safety, safeguarding machinery, cleanliness, proper ventilation and lighting, sanitation, medical care, sickness benefits, employment injury benefits, personal injury benefits, maternity benefits, unemployment benefits and family benefits. It also relates to supervision, employee counseling, establishing harmonious relationships with employees, education and training. Employee welfare is about determining employees’ real needs and fulfilling them with active participation of both management and employees. In addition to this, it also takes care of canteen facilities, crèches, rest and lunch rooms, housing, transport, medical assistance, education, health and safety, recreation facilities, etc.  HRM in Industrial Relations: Since it is a highly sensitive area, it needs careful interactions with labor or employee unions, addressing their grievances and settling the disputes effectively in order to maintain peace and harmony in the organization. It is the art and science of understanding the employment (union-management) relations, joint consultation, disciplinary procedures, solving problems with mutual efforts, understanding human behavior and maintaining work relations, collective bargaining and settlement of disputes. The main aim is to safeguarding the interest of employees by securing the highest level of understanding to the extent that does not leave a negative impact on organization. It is about establishing, growing and promoting industrial democracy to safeguard the interests of both employees and management.The scope of HRM is extremely wide, thus, cannot be written concisely. However, for the sakeof convenience and developing understanding about the subject, we divide it in three categoriesmentioned aboveConcept of HRMThe staffing or HRM is concern with people. People are vital for achieving organizational goals.Organizational performance depends on the quality of people and employees.Human Resource management or HRM is management of human energy an capabilities. HRM istheprocess concerned with the management of human energies and competencies to ensurecompetent and committed workforce to achieve organizational goals in a changing environment.
  3. 3. Koontz and Weihrich : Staffing is defined and filling and keeping filled positions in the organization structure. This includes identifying work-force requirements, inventory the people available and recruiting, selection, placing, promoting, appraising, planning the careers of compensating, and training or otherwise developing both new candidates, and current job holders to accomplishment their tasks effectively and efficiently. Decenzo and Robbins : Human resource management is a process consisting of the acquisition, development, motivation and maintenance of human resources Functions 1) Job Analysis 2) Human Resource Planning (HRP) HRM Planning Process Factors considered when forecasting future HR requirements. a) Demand for the organization’s good/services b) Plans goals and objectives c) Method of productions d) Retirement, transfers, resignations e) Death f) Retrenchments 3) Recruitment INTERNAL EXTERNAL Job posting Advertising Intranet Job Placement Agencies Succession plans Internet Placement through Colleges Referrals and Universities 4) Selection5) Hiring6) Induction7) Performance Evaluation8) Compensation Management
  4. 4. The main objective of the function is to develop and maintain a good salaried and wages system which is reasonable both internally and externally. Factors affecting Salaries and Wages Cost of living Supply and demand of labor Government requirements (minimum wage rates) Competitor wage scales Trade Union influences labor productivity 9) training and Development Methods of training and development Apprenticing On the job training Off the job training Simulations Role playing Case studies9) Employee Movements10) Welfare Administration This refers to all the facilities and comforts given to the employee by the employer apart from wages, salaries and incentives. Medical facilities Canteen facilities Housing facilities Transport facilities Recreation facilities Loan facilities
  5. 5. Educational facilities11) Health and safety Administration It is important to control the performance and behavior of the employees according to the rules and regulations of the organization. For this very reason it is important to develop, implement and maintain an appropriate disciplinary system. Importance of a discipline administration: To reduce conflicts and confusions To control the employees in an orderly manner To ensure employees behavior in accordance with performance standards, rules and regulations of the organization12) Discipline Administration13) Grievance Handling A grievance can be identified as a situation where the employee is in metal distress, dissatisfies or has a bad attitude, due to a work related unreasonable or unjust situation. A grievance could take place for various reasons; Job related reasons Work services related reasons Employee management related reasons Service conditions related reasons Employee behavior related reasons14) Labour Relations The continues relationship between the labour force and the management. Since labour forces are organized as Trade Unions, it is actually a relationship between Trade union representative and the management. However the Government is also an involved as a third party in order to regulate this relationship by ways of laws.
  6. 6. This relationship is also more commonly known as a tri-partite relationship. If in case there is a dispute between the employees and the management, the most common way of dispute resolution is through negotiations or Collective Bargaining and when the two parties reach to an agreement it’s known as Collective Agreement. a) Collective Bargaining: this can be identified as the negotiation that takes place between the management and the Trade unions during a particular time period regarding labour/Industrial issues. b) Collective Agreement: The agreements which the management and the Trade unions get into after a collective BargainObjectives